Is this the end for the country retreat?

City workers buying up second homes in the countryside are driving up rural property prices. This is leading to a serious lack of affordable housing. So what's the solution - construction of more houses, or a new tax on second home ownership?

If you live in the countryside, you may draw some comfort from a study that appeared in the British Journal of Psychiatry: it found that rural residents have slightly better mental health than non-rural ones. We can only assume that the study didn't examine those stressed out by the rural property market. According to the Halifax, the average house in rural areas costs 6.7 times average annual earnings, while property in urban areas cost 5.6 times local pay. In fact, the average home in rural areas cost £208,699, 19% more than the average price of £176,115 in towns or cities. And it doesn't look like it's the pastoralists among us driving the prices.

City workers, buoyed by bonuses of around £7.5 billion this year, are snapping up second homes in the countryside. According to the Royal Institute of Chartered Surveyors (RICS), the residential farmland market is at its strongest in two years, with 46% of it being bought up by non-farmer mortgage hunters. And buyers are looking far beyond the traditional commuter belt for a private, rural retreat, says Penny Churchill, a property correspondent with Country Life.

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Jody Clarke

Jody studied at the University of Limerick and was a senior writer for MoneyWeek. Jody is experienced in interviewing, for example digging into the lives of an ex-M15 agent and quirky business owners who have made millions. Jody’s other areas of expertise include advice on funds, stocks and house prices.